Moody's lowers Glimcher preferreds

Moody's Investors Service said it lowered the ratings of Glimcher Realty Trust's series F and G cumulative redeemable preferred stock to B1 from Ba3 after completing its review following the resignation of PricewaterhouseCoopers LLP, Glimcher's auditors, on June 1.

The outlook is stable.

Moody's said the downgrade reflects Glimcher's continuing deterioration in credit metrics, particularly increased leverage and reduced fixed charge coverage. In addition, Moody's said it is concerned about management controls at the REIT, as well as the fact that the new accounting firm will not have the opportunity to fully review Glimcher's financial reports and procedures until the new auditors have completed the year-end 2004 audit and released these financials in March 2005.

Offsetting these negative factors are Glimcher's success in eliminating all of its joint ventures, divesting the remainder of its shopping center portfolio with its announced sale of 25 centers, maintaining a laddered debt maturity schedule and reducing its variable rate debt exposure to 15% of total debt from 46% in 2000, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.